PSP60616 Advanced Diploma of Procurement & Contracting – Block 3 – Activity 24 Innovation and Leadership

Innovation and Leadership

The following six points are taken from a combination of international sources. They are presented here to stimulate discussion and engender a better understanding of the practical aspects of innovation in procurement.

1. Understand your supply base and where you’re starting from.
2. Decide where innovation is going to help. (Which areas are more likely to result in an innovative solution – e.g. raw materials or developed services)
3. Promote the opportunity (early engagement of the market i.e. at concept stage)
4. Define the requirement. The biggest barrier to innovation is the specification. Use of outputs and/or outcomes increases the possibility of innovative solutions.
5. The procurement process. Using standard evaluation methodologies (track record, financial solidity) can kill innovation. Allowing alternative bids, however, can give the desired innovation.
6. Manage the post contract relationship. Remember that innovation doesn’t stop at contract award. Negotiation and cooperation can lead to innovation in spite of original intent.

Based on your business case, analyse each point, provide an argued opinion on the statement’s validity to your business case.

Submit your findings to your facilitator for assessment.